The name Silk Road probably sounds familiar to you. It refers to the ancient trade route which connected China and the West. But have you heard of China’s new multi-trillion USD effort to build The New Silk Road, also known as One Belt One Road and Belt and Road Initiative (BRI)?
In this week’s blog article, Tenba Group maps out everything you need to know about the China New Silk Road and the resulting digital business opportunities in China and the world! Discover how China’s One Belt One Road holds Digital Business Opportunities for You!
Unlock the great potential of the New Silk Road to skyrocket your business at home and abroad!
Silk Road – An Inspiring History
The Silk Road was an ancient network of trade routes to connect the East and the West. It was central to the economic, cultural, political, and religious interactions between these regions from the 2nd century BCE to the 18th century.
The Silk Road continued to prosper over the course of almost 2,000 years. Finally, it was destroyed together with the collapse of the Safavid Empire (Iran) in the 18th century, some 200 years ago.
China’s New Belt and Road Initiative (BRI)
Now, in the 21st century, the ancient Silk Road is revived. Announced in 2013 by China’s President Xi Jinping, the One Belt One Road initiative shall reopen the trade corridor between China and the West. China’s $900 billion initiative shall essentially link Central Asia, the Middle East, and Europe.
In the long run, the One Belt One Road investments are expected to positively influence the EU’s political and economic positioning on a global scale. However, EU member states are divided on the BRI. France and Germany have not signed up to the BRI yet. Whereas Italy and many smaller member states have done so.
Looking over the big pond, the current trade war around tariffs between the US and China might just be a preview of what’s ahead. China’s increasing power through the BRI (infrastructure, politics, economy, military) is likely to lead to a decline of America’s global influence in the years ahead, according to analysts.
As stated in the Belt and Road Action Plan released in 2015, the new initiative will include land routes (the Silk Road Economic “Belt”) and maritime routes (the 21st Century Maritime Silk “Road”). The One Belt One Road map impressively showcases the extensive reach of China’s New Silk Road.
As China explained recently, the goal is to start a “new era of globalization”, which will benefit all and create new jobs. The Belt and Road Initiative is estimated to impact 60% of the World’s Population and to collectively account for 30% of the world’s global GDP.
68 countries will directly benefit from improved infrastructure with a total investment of up to $8 trillion, according to Beijing. And another Sixty-two countries could see investments of up to US$500 billion over the next years.
There are estimates that trade along the Silk Road could soon account for almost 40% of total world trade.
The Digital Silk Road
The Second Belt and Road Forum took place in April 2019. World leaders gathered in Beijing to discuss bilateral project opportunities, including the emerging Digital Silk Road. This was of particular interested to several global Fortune 500 companies.
The Digital Silk Road aims to bring new technological opportunities for emerging economies in Asia and around the world. This includes research, for example on Artificial Intelligence, a global satellite navigation system and a high-speed internet connection.
The increasing use of e-commerce and mobile payments showcase a more relatable and practical effect of the New Silk Road initiative.
Companies like Alibaba, Tencent (WeChat), and Didichuxing invest several hundred million USD in online and mobile payment systems, everyday mobility (Grab), delivery (Singapore Post), and communications services.
The Challenges around China’s Belt and Road Initiative
The challenges are complex and include interlinked bottlenecks in infrastructure, financial markets, trade facilitation, trade barriers, and limited regional cooperation. With the overcome of these barriers, there is a significant potential for growth regionally and globally.
- Improving transport and energy connectivity is crucial for greater economic integration. In particular, there is an unexploited potential for energy trade.
- Building cross-regional coordination institutions, such as cooperative planning and implementation processes, is a major challenge. Even more so, when coordination policies need to be developed across two or more countries.
- The biggest opportunity lies in overcoming trade barriers, such as Non-Tariff-Measures, services, competition policy, intellectual property protection and politically sensitive goods such as agriculture.
- To ensure that the benefits of infrastructure investment result in an actual reduction in trade-related costs, trade facilitation measures are seen as essential. Customs activity has the most visible impact on increasing the time and cost of moving through borders. However, border transaction costs (e.g. port facilities, documentation, immigration and quarantine requirements) must also be considered.
Digital Business Opportunities for You
Transfer of know-how, awareness of consumer behavior trends, and operationalization in the digital economy have provided opportunities for growth for digital-based companies.
Discover how China’s One Belt One Road holds Digital Business Opportunities for You!
Entering the Growing Chinese Market
No matter which resources, products or services your company provides, be sure to unlock the financial potential of China’s One Belt One Road initiative and its multi-trillion USD investment.
- A professional and SEOptimized business website combined with Chinese and Western Social Media Marketing enables you to reach Chinese businesses and consumers.
- Set your Chinese website up with a .cn domain in Hong Kong or in China with an ICP license. Use Cloud Hosting for faster and more secure services.
- Reach your clients in their language and culturally appropriate.
- Ensure legal and tax compliance to protect your digital presence. For example, EU-based companies must ensure GDPR compliance globally, in order to avoid fines of up to 20 Million Euros.
- Enter the unique and complex market in China with smart integrated marketing strategies.
An online marketing company like Tenba Group can assist you to set up a multilingual online presence for you and reach the Chinese market with tailor-made digital marketing strategies.
We offer customized solutions in English, Chinese, and German. Our team of international experts will help you to reach Chinese customers through smart online marketing.
Reach Millions of Potential Customers
Today, the number of internet users in China exceeds 800 million. This makes China the world’s largest online community. Together with an annual GDP growth rate of over 6 percent in China, this makes it one of the most attractive markets in the world.
Now add the One Belt One Road multi-million USD investment in industries like mobile payment, communication services, and everyday mobility, and know that these numbers will skyrocket even further.
Your business can access this target audience with attractive multilingual content on Chinese and Western Social Media Platforms and WeChat Advertising.
Your digital marketing agency can help you to save you time and energy on this. From research and content creation to initial setup and regular maintenance, Tenba Group is ready to help!
We successfully apply a hybrid model, which integrates digital marketing on Western and Chinese Social Media Platforms. We are also happy to create a good website for you, which is tailored to fit the needs of your target audience.
Join the Digital Silk Road
Tenba Group is the digital marketing agency of your choice. We are Your Digital Bridge to China and the World – from web development to digital marketing.
And all of that at a small price – our digital website marketing services won’t break your bank. Unlock the potential of the One Belt One Road initiative to skyrocket your business!
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